25. In the LM Partnership, Laura and Maria had a capital ratio of 3:1 and a profit and loss ratio of 2:1, respectively. They used the bonus method to record Nora's admittance as a new partner. What ratio should be used to allocate, to Laura and Maria, the excess of Nora's contribution over the amount credited to Nora's capital account? O a Laura and Maria's new relative capital ratio b. Laura and Maria's new relative profit and loss ratio
25. In the LM Partnership, Laura and Maria had a capital ratio of 3:1 and a profit and loss ratio of 2:1, respectively. They used the bonus method to record Nora's admittance as a new partner. What ratio should be used to allocate, to Laura and Maria, the excess of Nora's contribution over the amount credited to Nora's capital account? O a Laura and Maria's new relative capital ratio b. Laura and Maria's new relative profit and loss ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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